SHANGHAI, May 15(SMM) -
According to data released recently by the European Automobile Manufacturers Association (ACEA), new car registrations, including those in the EU, UK and EFTA, fell by 20% to 830,447 units in April, the 10th consecutive month-on-month decline, due to the ongoing supply chain malfunctions.
Automotive forecaster LMC Automotive said the global chip shortage is still suppressing car production. Full-year deliveries of passenger cars in the Western European market are expected to fall below 10 million units, down 6% year-on-year.
As China's main export destination of magnesium alloy, Europe’s monthly imports of magnesium alloy accounted for more than 50% of China's total exports of magnesium alloy in a year. According to SMM statistics, China exported 11,686.5 mt of magnesium alloy in April 2022, down 28.1% on the month and up 22.9% on the year. The exports increased by 6.8% year-on-year, while the exports of magnesium alloy in Europe accounted for 50% of China's total exports of magnesium alloy in April, down 14% from 58% of the previous month.
According to some domestic traders, most foreign orders tended to force down the prices due to the declining magnesium prices. While operating rates of magnesium plants hovered at a high level since the beginning of the year with higher profit margins. The oversupply will be more severe in the market. As the largest export destination of China’s magnesium alloy, if the automotive industry remains sluggish in Europe, it will directly affect the future exports of magnesium alloy in China, further aggravating the imbalance between domestic magnesium supply and demand. SMM will continue to focus on the landing of overseas orders of magnesium alloy.